21: Erik’s Deal Matrix

<p>Today I’m going to give you insight into my deal matrix— <em>how</em> I choose what franchise to purchase. Over the years working as a franchisee, area developer, and serial entrepreneur I’ve developed a method for choosing franchises that will work for me. If you’re interested in owning a franchise and aren’t sure about working with a consultant, listen to this episode now! I’ll talk all about costs to consider, what industry to choose, and the franchise structure in place. </p> <h2>Outline of This Episode</h2> <ul> <li>[0:35] Erik’s Deal Matrix</li> <li>[2:20] Taking cost into consideration</li> <li>[7:00] What I look for in a deal</li> <li>[12:15] What to look for in a franchisor</li> <li>[17:45] Finding the right franchise consultant</li> </ul> <h2>Taking cost into consideration</h2> <p>Cost is probably the <em>#1 thing</em> on the forefront of your mind when researching franchise opportunities. The cost can be prohibitive and you’ll often find yourself having to decline a good opportunity. Starting costs <em>can</em> be high. So how do you make the leap? <strong><em>Are there ways to overcome the ‘no’ and make a purchase?</em></strong></p> <p>If you have an investor willing to partner with you and cover some of the starting costs it can make a huge impact. Family, friends, or fellow entrepreneurs who <em>know</em> your work ethic and <em>trust you</em> to be successful are an asset. There’s always one thing I ask—that they are willing to be involved in the process from the very beginning. </p> <h2>My deal matrix: 4 things to look for when choosing an industry</h2> <p>Another important topic you need to consider is what industry to get involved in. As an owner, there are 4 things I always look for:</p> <ol> <li>You want a business model that has recurring revenue where you can acquire customers and retain them—it’s all about client happiness!</li> <li>I prefer industries that allow semi-absentee ownership that allows me to put a management team in place locally.</li> <li>I want a business where the custome